With the American Rescue Plan Elementary and Secondary School Emergency Relief (ESSER) funds set to expire on January 28, 2025, many state and district administrators are scrambling to spend their money efficiently. But because ESSER rules can be quite complex to navigate, it can take quite some time to plan a compliant project.
If you find yourself in this position, you may want to apply for an extension. The United States Department of Education has already offered several states and territories 18-month extensions on their ESSER funds.
In this article, we’ll look at what does and doesn’t qualify for ESSER funding, the deadlines you need to meet, and how you can apply for an extension to support your financial goals.
Key Takeaways
- ESSER funds were allocated to help schools across the United States recover from the impact of the COVID-19 pandemic.
- ESSER funds are set to expire in early 2025, but you can still apply for an extension.
- To apply, follow your state’s guidelines, and make sure you document the reasons for delays.
- Extensions may allow your school district to spend money on projects that were committed by September 2024, until March 2026.
What Can ESSER Funds Be Used For?
ESSER funds are aimed at helping schools recover from the impact of the COVID-19 pandemic. They can be used for a wide range of needs, from infrastructure to professional development and teaching and learning programs. For example:
- Ventilation improvements to help create safer learning environments
- Investing in EdTech tools to improve remote learning
- Addressing learning loss through after-school and summer programs
- Hiring additional staff or tutors to support students who have fallen behind
The goal is to ensure that students receive the support they need to thrive.
How Can ESSER Funds Support Financial Goals in the Education Sector?
ESSER funds offer schools, school boards, and districts an opportunity to meet immediate financial needs while setting up long-term investments in EdTech.The funds enable schools to purchase devices, software licenses, and interactive learning software, to help bridge digital divides and enhance access to high-quality online resources.
Allocating ESSER funds toward tech-based professional development also strengthens staff expertise in digital learning, building long-lasting skills. This strategic use of ESSER funds reduces reliance on general budgets and allows districts to establish sustainable, tech-driven education models.
Are ESSER Funds Still Available?
ESSER funds were created under the CARES Act in March 2020 to support schools in managing pandemic-related challenges. Three rounds—ESSER I, ESSER II, and American Rescue Plan (ARP) ESSER—were released, totaling around $190 billion in federal aid for K-12 education. While the funds have technically been allocated, school districts have deadlines for expenditure and liquidation to complete projects and settle accounts.
For ESSER I and II, final deadlines have passed, but districts have until January 28, 2025, to spend ARP ESSER monies. “Late liquidation” provisions, however, allow extensions for districts facing delays in spending due to supply chain issues or contractor delays. Schools must follow state guidelines and justify needs to ensure proper fund use, so adhering to deadlines and accountability is essential in this closing phase.
How Does Late Liquidation Help?
Late liquidation offers schools and districts extra time to complete ESSER-funded projects affected by delays. This is particularly helpful for complex projects like infrastructure improvements or EdTech rollouts, which often require coordination with external vendors. By extending deadlines, late liquidation ensures that valuable resources aren’t wasted and that schools can maximize ESSER’s impact.
However, there are drawbacks. The extended timeline may complicate long-term planning, as schools must navigate ongoing financial tracking and compliance requirements. Additionally, delays could disrupt anticipated program benefits, potentially impacting students who would benefit from timely interventions.
What Expenses Qualify for an Extension?
Expenses eligible for late liquidation extensions must be obligated by the original ESSER deadline and directly related to allowable ESSER uses, such as infrastructure, EdTech, or staffing initiatives.
Non-qualifying expenses include those not pre-approved or outside ESSER’s scope, like unrelated capital projects or items purchased after the deadline. Specific state guidelines and documentation requirements may vary.
How Can Districts Get an Extension?
To secure a late liquidation extension, schools, school boards, and districts must follow specific state guidelines and demonstrate that ESSER funds were obligated by the original deadline (typically September 30, 2024, for ARP ESSER). Documentation proving delays, like vendor issues or supply chain disruptions, is crucial to justifying the extension.
Schools must contact their state’s education department or designated ESSER coordinator to initiate the process. You’ll be required to keep detailed records of your expenditures and submit all formal requests within designated time frames.
What Is the Deadline for Applying for the Extension?
Schools, school boards, and districts must apply for ESSER late liquidation extensions by December 31, 2024. While each state may have specific timelines for submitting extension requests, applications should typically be submitted well in advance to allow processing time. Extensions are reviewed by state education departments, which verify that funds were obligated by the original deadline and assess the validity of the delays (e.g., supply chain issues).
Once approved, you may have an additional 12 months to complete spending. The key is to submit comprehensive documentation promptly.
What Does the Deadline Extension Cover?
The late liquidation deadline extension covers ESSER-eligible expenses obligated by the original deadline, including facility improvements, EdTech, and program supplies delayed by external factors.
However, it generally does not cover recurring expenses, such as staff salaries, unless the salary was part of a contract or project already obligated before the deadline. Routine operational costs, new obligations made after the deadline, and expenses unrelated to ESSER’s intent—like extracurricular program expansions unrelated to COVID-19 learning losses—are also ineligible for late liquidation extensions.
Were Extensions Granted for ESSER 1 and ESSER 2?
Extensions for late liquidation were available for ESSER I and ESSER II funds, but only under specific conditions.
ESSER I funds, allocated through the CARES Act in March 2020, had a spending deadline of September 30, 2022. Due to challenges like supply chain disruptions and staffing shortages, some districts applied for extensions under the late liquidation provisions, giving them an additional year to fully use obligated funds if justified.
ESSER II, provided through the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) in December 2020, had a deadline of September 30, 2023, with similar extension options available.
To qualify for these extensions, schools and districts had to show that the funds were obligated by the original deadline and that the delay in spending was due to external factors. However, not all requests were approved; states had to confirm that each extension met federal criteria. Extensions primarily applied to one-time investments rather than recurring expenses, like salaries or operational costs.
Conclusion
In summary, ESSER funds have provided significant funds to schools, with options for late liquidation helping districts maximize their impact. While deadlines and eligibility criteria remain stringent, extensions provide flexibility for completing essential projects.
However, schools must plan carefully, maintain documentation, and adhere to guidelines to fully benefit from these resources.
To learn more about how to maximize the impact of education dollars, check out these helpful resources from TAO:
- 3 Challenges in Higher Education & How to Solve Them
- Choosing the Right Assessment Tools: A Guide for Schools
- A 2024 US National EdTech Policy Recommends Solutions for Tackling Digital Inequities
FAQs:
What is the deadline for spending ARP ESSER funds?
The final deadline to spend ARP ESSER funds is January 28, 2025. However, extensions for late liquidation may be granted if certain conditions are met.
Can schools use ESSER funds for staff salaries?
ESSER funds can only cover staff salaries if they are part of specific, pre-obligated, ESSER-approved projects or contracts.
How can districts apply for a late liquidation extension?
Districts must contact their state’s education department to apply for a late liquidation extension. They’ll need to provide documentation proving that funds were obligated by the deadline and delays were due to external factors, such as supply chain issues.
